PSIR deepanalysis
PSIR deepanalysis
PSIR deepanalysis

Needed a clear trade strategy Daily PSIR News analysis

Needed a clear trade strategy

  • PYQs linkage:

  1. Do you agree with the view that the India foreign policy is increasingly being shaped by the Neoliberal outlook? Elaborate. 10(2018)
  2. “India’s current foreign policy marks significant qualitative shifts from that of the previous regimes.” Discuss. 10(2018)
  3. Critically examine the major factors responsible for a turnaround in the trajectory of India’s foreign policy in the post-cold war period. 15 (2024)
  4. Would you concur with the view that of late, India’s foreign policy has been in a transition mode from Nehruvianism to Neo Liberalism? Support your answer with the help of suitable examples. 20(2024)
  • Theory application: Neo liberal theory of international relations
  • Concepts and keywords: Tariff war, global supply chains, competitiveness of exports, greater market access, integration, global production system, manufacturing powerhouse, rare earth minerals.
  • Important facts:
  1. In 2019, India chose not to be part of RCEP (Regional comprehensive Economic partnership).
  2. India’s trade deficit with China– $99.2 billion
  3. Apple have more than 20 component suppliers in India (slightly improved from 14 suppliers in 2023)
  • Brief analysis and key points from the news or editorial:

A strong case for a clear trade strategy

(this affirms the neo liberal approach to international relations, where trade related interdependence has been given prime importance while managing international affairs.)

  1. Advantages of trade agreements:
  • Integration into global supply chains
  • Boosting exports (improving the competitiveness of exports)
  • Catalyse economic growth
  • Greater market access (lowered trade tariffs)
  • Potential to emerge as a major production hub
  • 2. Challenges related to trade agreements:
  • Low integration with supply chains that run through south Asia and ASEAN region
  • Non- participation in major trade agreements like RCEP and CPTTP due to Chinese presence
  • Requirements of rare earth materials and dependence of China for their availability.
  • 3.What needs to be done:
  • Stable trade relations
  • Smooth working of supply chains
  • Seamless movement of components/personnel from other countries
  • Promoting investments with clear trade strategy.

 

Practice question (framed on the basis of PYQs dimensions):

Recent developments in Indian foreign policy initiatives shows a clear adoption of Neo-liberal outlook. What are the major drivers of this approach? Substantiate with relevant examples. 15 Marks.